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Tuesday,23 May 2017, 05: 30

Corporate Cerdit Rating

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Islamic Countries Credit Rating System (IC-CRS)


The Islamic Countries Credit Rating System has been deemed as a necessity in economic transactions. In order to sign a deal with a corporation, one needs to get to consider the credentials of the institutions on a scientific basis by credit rating institutions in order to have an assured contract.

In this respect as there were no credit rating companies available in Islamic countries, ICRIC started to design and create “Islamic Countries Credit Rating System (IC-CRS)” in order to use the existing credit rating knowledge in the Islamic world’s available rating companies in lieu of similar rating institutions in non Islamic regions so that they can easily emerge in global arenas and assure their economic counterparts.

Exact supervision on companies in accordance with 100 criteria which exist in EFQM system in Europe and adding quality criteria which are set in all countries, prepares this system for credit rating of companies from those with 100 to 1000 employees.

Credit rating is a theory indicating how much a company puts its commitments into practice completely and in proper time. Credit rating reflects financial, performative and legal aspects of a company and determines its capability and tendency in fulfilling its commitments. Credit rating is neither an indicator of transacting with commercial partners nor investing and so on, but an indicator of determining a companys condition in meeting its commitments.


 

Objectives:

  • ·        To Design, and adopt and propose Credit Rating System among Islamic companies of 57 OIC member states;
  • ·        To become the most prominent rating agency in Islamic Countries that provides real-time verified information for the international business people about the general status of the respective chambers’ members,
  • ·        To distinguish reliable and profitable businesses from others, and as a result, improve and facilitate trade among the Islamic Countries by introducing these businesses to each other through a web-based platform.


To provide a general framework to develop a distinctive Credit rating system among OIC member chambers, in order to:

  • ·        Create and develop an integrated online rating system,
  • ·        Trade relations facilitation,
  • ·        Provision of special privileges and promote business opportunities and cooperation,

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With respect to this Project, ICRIC Strives to:

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  • ·         Define Credit Rating criteria and methodology in association with ICCIA;
  • ·          Lead technical committees with specific relevant responsibilities and knowledge,
  • .          Coordinate and correspond with the best international rating agencies

Credit rating encompasses quantitative, qualitative and legal analyses. Quantitative analyses generally include financial analysis based on company financial reports.

 Qualitative analysis comprise analysis of management quality, company competition, and expected growth in related industries and eventually foibles of technology changes and also changes of workforce rules and relationships of company opportunities, strength, weak points and  threats.

Creating mutual trust among commercial partners by checking company credits freely, obviating all concerns through having access to prestigious information resources and also creating enough assurance about the level of a company’s credit using prestigious organizational reports as a third person, are of tangible features and advantages of credit rating.

Regarding the vital importance of credit rating for all economic institutes in our modern era, ICRIC conducts technical surveys in this area and diagnoses existent inefficiencies among Islamic countries; subsequently, establishes a credit rating system for Islamic countries corporations.

This system is based on a model consisting of descriptive and mathematical parts. Total considered models’ indicators are about 600 and legal analyses including financial report, surveying the compatibility of financial and economic activities of organization with government rules as well as custom and legal affairs and also company complaints.

Islamic countries credit rating system analyzes these three types of information and saves them digitally.

At the next step, after processing and classifying pieces of information they are submitted as company credit report. This ranking should be revalidated after 6-12 months.

In this manner, ICRIC is performing credit rating for large institutes and some of the economic centers and Islamic chambers benefit from its consultation services.

Information regarding the IC-CRS can be accessed through www.ic-crs.com.